Are you still waiting for last year’s Federal Income Tax refund check? If so, you may be one of over 110,000 taxpayers who didn’t receive their tax refund check due to mailing adress errors. The good news? The IRS is looking to return $164.4 million of these undelivered tax refund checks.

“We want to make sure taxpayers get the money owed to them,” said IRS Commissioner Doug
Shulman. “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”

A taxpayer only needs to update his or her address once for the IRS to send out all checks
due. Undelivered refund checks average $1,471 this year, compared to $1,148 last year. Some
taxpayers are due more than one check.

The average dollar amount for returned refunds rose by just over 28 percent this year,
possibly due to recent changes in tax law which introduced new credits or expanded existing
credits, such as the Earned Income Tax Credit.

If a refund check is returned to the IRS as undelivered, taxpayers can generally update their addresses with the “ Where’s My Refund?” tool on IRS.gov. The tool also enables taxpayers to check the status of their refunds. A taxpayer must submit his or her Social Security number, filing status and amount of refund shown on their 2009 return. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems.

Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling
1-800-829-1954.

While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Taxpayers can receive refunds directly into their bank, split a tax refund into two or three financial accounts or even buy a savings bond.

The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. E-file combined with direct deposit is the best option for taxpayers; it’s easy, fast and safe.

The public should be aware that the IRS does not contact taxpayers by e-mail to alert them
of pending refunds and that such messages are common identity theft scams. The agency urges taxpayers not to release any personal information, reply, open any attachments or click on any links to avoid malicious code that will infect their computers. The best way for an individual to verify if she or he has a pending refund is going directly to IRS.gov and using the “ Where’s My Refund?” tool.

source: irs.gov

Be careful of tax  preparers who claim they can get their customers “instant” federal income tax refunds.  They may not be giving their clients all the money they’re owed.

Some accountants offer “refund anticipation loans” as a “rapid” way to give customers tax refunds, but according to the New York City Department of Consumer Affairs, such loans are a fast way to lose money.

“Between the fees and interest rates that are charged for these refund loans, we’ve seen costs as high as a 500-percent rate when you take a look at what’s being borrowed,” says  NYC Consumer Affairs Commissioner Jonathan Mintz.

The loans are advertised as “fast” or “instant” refunds, but they’re really high-interest loans that lure people who do not want to wait the standard eight days to receive their refund from the Internal Revenue Service.

On Tuesday, DCA officials denounced such loans while announcing the results of a month-long citywide crackdown on over 800 income tax preparers.

“Three out of 10 preparers were misleading their customers about their rights and in most cases were telling them that a refund loan was somehow just a ‘rapid’ refund or a ’same day’ refund, and that kind of advertising is deceptive and illegal,” says Mintz.

The Bronx is the borough with the most offenders, with a 50-percent non-compliance rate.

“We issued over 2,000 violations to preparers across this sweep. Those violations which could total up to a million dollars in fines,” says Mintz.

However, the number of compliant tax preparers has increased from last year.

To protect yourself when purchasing tax preparation services, the DCA offers the following tips:

• Avoid “instant,” “rapid,” “same day” or “fast cash” refunds. They’re actually loans with extremely high interest rates.

• Know your rights. Tax preparers must post their qualifications, fees and charges and must give a consumer bill of rights. They must sign every tax return and provide you with a copy of your return and a receipt.

• Protect yourself. Tax preparers may not charge you fees based on the amount of taxes you owe.

• Never sign a return that is blank, incomplete or filled out in pencil.

• Do not pay cash.

Protect yourself and your federal income tax refund by choosing a reputable tax preparer.  If you’re having trouble finding a good tax preparer, ask a family member or a friend.  Advice from a trusted source should put your worries at ease.

source:  ny1.com

Employees from the US Nonprofit housing group ACORN were fired after being caught on hidden camera assisting a man posing as a pimp and a woman pretending to be a prostitute, advising them to lie to the Internal Revenue Service (IRS) and giving guidance on how to claim underage girls from El Salvador as tax dependents.

Initially, two ACORN staffers from the Baltimore office were fired on Thursday, September 10, for recommending illegal activities to secure a housing loan. 24 hours later two ACORN staffers in the Washington office were also fired for offering to help the same “pimp” and “prostitute” secure a loan.

25-year-old independent filmmaker James O’Keefe, posing as the pimp, secretly taped the meeting that have ignited calls for investigations of ACORN, the Association of Community Organizations for Reform Now.

ACORN’s leaders said Friday they were “appalled and angry” at what their employees had done, but insisted the videos were part of a political “smear” campaign and not representative of the institution as a whole.

“But that does not excuse the behavior of the employees,” wrote ACORN’s president Alton Bennet and executive director Mike Shea. “We have fired them and are initiating an internal review of practices and reminding all staff of their obligation to uphold the highest legal and ethical standards.”

Rep. Charles Boustany, R-La., called for a hearing to investigate ACORN’s tax filing assistance programs following the release of the videos he said suggested multiple incidents of tax fraud.

“In light of the apparent flagrant and willful attempts to suborn tax fraud, I … (am seeking) a hearing of the Oversight Subcommittee of the House Ways and Means Committee as soon as practicable to investigate ACORN’s activities,” he said Friday.

O’Keefe was accompanied by 20-year-old Hannah Giles, posing as a prostitute. They both sought help from ACORN workers in Baltimore, who advised them how to falsify tax forms and seek illegal benefits for young girls from El Salvador they wanted to smuggle in as prostitutes.

“There’s like 10 girls,” O’Keefe says. “There’s ten El Salvodoreans.”

The ACORN staffer replies, “I understand what you are saying.”

ACORN — the Association of Community Organizations for Reform Now — calls itself a network of families “working together for social justice and stronger communities,” according to its Web site.

The organization has been accused by Republicans and conservatives of committing fraud in voter registration drives.

“Taxpayers should be outraged that their money has gone to an organization that, in addition to facing charges of voter fraud and tax violations, is willing to facilitate prostitution,” said Rep. Steve King, R-Iowa.

“As this video confirms, ACORN continues to operate as a criminal enterprise.”

The videotape was made public Thursday, September 10 by BigGovernment.com. Portions of the video were aired throughout the day on FOX News.

source: Fox News